Key takeaways
National home prices lifted 0.34% to hit a new record in March, bringing prices up 1.57% so far this year to sit 6.79% above March 2023 levels.
Prices across the combined capital cities rose 0.40% to a new peak in March, with capital city prices now sitting 7.64% above levels from the same time last year.
All capitals bar Hobart saw prices rise in March, Perth (+0.99%), Canberra (+0.67%) and Brisbane (+0.41%) saw the strongest growth.
Throughout the past year smaller capitals have outperformed, and this trend persisted into March. Perth, Adelaide and Brisbane home prices hit record highs with annual growth of 18.62%, 13.47% and 12.90% respectively.
In the first three months of 2024, year-on-year home price gains in Perth have been the strongest on record dating back to 2010, and home prices are almost on par with Hobart.
Prices in capital cities have outpaced regional areas this year to date. Even so, regional areas lifted 0.19% in March to a new peak. Regional SA (+0.64%) and regional Queensland (+0.49%) led growth, while prices declined in regional Victoria (-0.35%).
National home prices hit a new record high in March, lifting 0.34%, according to the latest PropTrack Home Price Index report.
That brings prices up 1.57% so far this year to sit 6.79% above March 2023 levels.
Ms Eleanor Creagh, Senior Economist at PropTrack commented:
“The home price upswing persisted in March, and prices reached a record high nationally. Despite an increase in the number of homes hitting the market this year, demand has absorbed the surge leading to further price increases.
As was widely expected, the Reserve Bank kept the cash rate on hold at 4.35% in March and many expect the next move for interest rates will be down, though timing remains uncertain. The expectation that interest rates may begin to move lower in late 2024 will sustain buyer and seller confidence.
Housing demand is also being buoyed by population growth, tight rental markets, resilient labour market conditions and home equity gains. Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.
The imbalance between supply and demand is likely to further offset the impact of affordability constraints and a slowing economy. As a result, prices are expected to remain on the rise in the months ahead.”
State by State Property Market Update
The latest Proptrack House Price Index Report showed how fragmented our housing markets are.
Sydney
Sydney home prices lifted 0.40% in March to a fresh peak and despite an uplift in new listings hitting the market in Sydney, buyer demand has absorbed some of that increase with prices rising further.
Following a period of slower home price growth during the holidays, growth has reaccelerated with prices rising 1.79% in the first quarter of this year, the strongest quarterly growth since the three months to September 2023.
Melbourne
Melbourne home prices lifted 0.27% in March bringing them up 1.71% year-on-year, the strongest annual growth since June 2022.
Even so, prices in Melbourne remain 3.35% below their peak in March 2022.
The price recovery in Melbourne is lagging behind Sydney and Brisbane but remains ahead of Hobart and Canberra, with prices up 2.30% from their January 2023 low.
Brisbane
Brisbane has remained one of the strongest-performing markets over the past year.
Home prices in Brisbane have risen at a fast pace in the year to date, and are now 12.90% above March 2023 levels.
Prices lifted a further 0.41% in March and are up 2.22% in the first quarter of 2024.
Adelaide
Adelaide home prices rose 0.31% month-on-month in March to a new peak and are now up 2.24% year to date.
Adelaide is one of the country’s top-performing markets, with home prices up 13.47% year-on-year.
The comparative affordability of the city’s homes has seen prices defy the significant increase in interest rates since May 2022.
Low stock levels are also intensifying competition, with home prices in Adelaide rising at a fast pace over the past year.
Perth
Perth has maintained its streak of relative outperformance and was the strongest market in the country for monthly and annual home price growth.
Prices surged 0.99% in March – the 20th consecutive month of growth – and are up 18.62% on March 2023 levels, the strongest pace of annual growth on records back to 2010.
Record low supply amid strong buyer demand has resulted in a sellers’ market.
The relative affordability of the city’s homes, population growth, and very tight rental markets are also supporting home values.
Hobart
Declining home prices in Hobart persisted in March, falling a slight 0.03%.
Hobart remains the weakest capital city market when comparing annual price growth (-1.65%), as well as the change from peak (-7.90%).
However, this comes after several years of outperformance, as well as strong growth during the pandemic which has seen affordability deteriorate.
Home prices in Hobart are still up 36.1% since March 2020.
Darwin
Darwin home prices rose 0.03% in March, taking them just 0.64% below their level a year ago.
Unlike the larger capitals, prices in Darwin have not recovered and remain 2.58% below their May 2022 peak.
ACT
Home prices in Canberra rose 0.67% in February, bringing prices up 2.22% above their March 2023 levels, the strongest annual growth since September 2022.
With the price recovery in Canberra remaining underway, prices are now 4.34% below their March 2022 peak after recovering just over a third of their decline.
